Osbourne warns of "Dangerous cocktail" of economic risks

Graham_Devon

The UK faces a "cocktail" of serious threats from a slowing global economy as 2016 begins, Chancellor George Osborne will warn.

Mr Osborne will say this year is likely to be one of the toughest since the financial crisis.

He told the BBC that far from "mission accomplished" on the economy, "2016 is the year of mission critical".

His message is in stark contrast to the positive tone of his Autumn Statement, when he said the UK was "growing fast".

On the last sentence, todays statement is nto only a stark contrast, it's wildly different to his Autumn statement.

One of those dangerous risks appears to be consumer credit (all over again). Something which is a bit Catch22 really as it's allowed the government to make statements about how well we are doing.

However, he was keen to point out that the recovery was "not a debt fuelled recovery". However, he stated that complacency appears to be developing.

So it seems hes covered all bases. Warned on everything but claimed that it's not actually an issue right now.

Least they have every base covered should they need to make statements in the future!

http://www.bbc.co.uk/news/business-35249887

mwpt

Oh dear Osborne. Your goto [strike]GDP[/strike] trump card, the housing market, looks like it might have been used already. Can you lower interest rates more, print more, create new HTBdeluxe schemes?

Thrugelmir

GDP means very little out in the real world......

mwpt

Thrugelmir wrote: »

GDP means very little out in the real world......

I can remove that word from my post and retain the meaning

Tromking

Gonna miss his public sector borrowing target by £10 billion they reckon. Osborne is over rated.

kabayiri

Will we forgive him (or the Torys) a second time for missing the deficit target, should it happen come the end of this parliamentary term?

I'm not sure we can.

Even in a challenging global world, there will still be winners and losers. We need to be the winners.

mwpt

kabayiri wrote: »

Will we forgive him (or the Torys) a second time for missing the deficit target, should it happen come the end of this parliamentary term?

I'm not sure we can.

Even in a challenging global world, there will still be winners and losers. We need to be the winners.

I don't have facts to back up my opinion but I never imagined he would meet his borrowing targets, neither last term, nor this term. I cannot see how we can get the deficit to zero in five years, never mind begin paying back the debt. Not without more tax rises. Do they even truly want that, shrinking the money supply?

My pure speculation: The UK just has to appear to be prudent, or at least more prudent than the next best thing, so investors don't lose faith in British bonds.

Moto2

Surely the slowing global economy can be attributed to Gordon Brown?

Mistermeaner

How much worse would it have been under labour?

The same people that are criticising the missed targets are the exact same people who criticise every spending cut.

Graham_Devon

Mistermeaner wrote: »

How much worse would it have been under labour?

Impossible to answer really as we just don't know. All we can do is guess, and bias is going to take over here on all sides.

What we do know though is that labour didn't force these targets on the tories.

Mistermeaner

Graham_Devon wrote: »

Impossible to answer really as we just don't know. All we can do is guess, and bias is going to take over here on all sides.

What we do know though is that labour didn't force these targets on the tories.

And the part of my post you didn't quote?